Coincheck Reports Huge Profits Despite Suffering Major Hack

Reuters reports that Japanese cryptocurrency exchange Coincheck has secured about $432.56 million in profits during the last financial year, which ended in March. Just recently $530 million worth of NEM (XEM) were stolen from the exchange by hackers, which forced the company to compensate the users who lost their funds.

Despite the staggering amount of lost funds, the exchange still managed to turn a profit, earning an estimated 6.3 billion yen. According to experts, the operating margin of the company amounts to 86 percent, which further demonstrates how lucrative the company’s activity is. Coincheck supports Bitcoin as well as 12 other cryptocurrencies. The company creates its main revenue stream by charging the users transaction fees.

The company’s resilience in the face of huge unintended losses is one of the reasons why the exchange was bought by Monex. Coincheck is not a unique company in that respect; most other exchanges are literally money-generating machines.

Traditional banks, on the other hand, don’t do so well. Deutsche Bank has laid off roughly 300 U.S.-based investment bankers this Wednesday, and 100 more is expected to be fired next week. The decision was made as a result of the bank’s disastrous financial performance in the first quarter of the year.